PHAM NEWS | OCTOBER 2024 40 Electric Heating


Proving the viability of heat batteries


A recent trial led by UK Power Networks, in partnership with OVO Energy and Tepeo, demonstrates how the installation of heat battery technology could enable millions of UK homes to switch to low-carbon electric heating and ease pressure on the grid.


T


he Neat Heat trial ran for 18 months and involved installing Tepeo’s Zero Emission Boiler


(ZEB), which uses heat battery technology, into customers’ homes in the Southeast and East of England. The findings demonstrate that heat batteries, an all-electric low-carbon alternative to fossil fuel boilers, can provide grid flexibility by shifting peak energy demand for heating to off-peak times. It is claimed that the homes could be efficiently heated even in the depths of winter, while providing substantial carbon savings of 15,600 kgCO2e compared to if these homes were using gas boilers instead. By leveraging the thermal


storage capability of the ZEB, the trial showed homes could ‘charge’ their heating systems outside of the most expensive hours of the day, with heat being released on demand when needed. At launch, the project attracted over 2,000 registrations of interest for the limited spaces available,


evidencing a strong demand from UK customers for new alternatives to fossil fuel heating.


Cheaper rates The trial was built around an innovative proposition developed by OVO called a ‘type of use’ add-on, giving customers access to a cheaper (than standard) rate to charge their ZEBs. Customers could also set their ZEBs to charge during the cheapest times during the day, saving money for the customer and enabling flexibility for the grid. The Neat Heat trial showed


that 95% of a trialist’s yearly heating demand could be moved outside of peak hours, where demand on the grid was highest, including over 90% in the coldest weeks in winter. All the households who participated in the trial reported that they experienced no noticeable change to their heating – with the ZEB providing a similar experience as a traditional boiler, but powered entirely by electricity.


It is argued that green


solutions such as the ZEB could play an important role in decarbonising home heating. The manufacturer suggests that they represent an ideal solution for the estimated 20%+ of UK homes which lack the space required for low carbon solutions like heat pumps or where these solutions could prove difficult to retrofit. All homes involved in the


trial also benefited from quick installations with minimal disruptions, taking on average one-to-two days. Further evidence of the positive experience of the trialists is that they have all also opted to continue with their new ZEB heating solution rather than reverting back to a fossil fuel boiler.


Shifting demand Head of innovation at UK Power Networks Luca Grella comments: “Being able to move electricity demand away from peak hours is huge for both our network and customers. “The more people move to


electric heating systems, the more resilient our network will need to be. Shifting demand away from peak hours will reduce the upgrades needed to keep up with the future demand of green technologies, which would ultimately have been paid for by customers across the country. We hope this also opens the door to further low carbon solutions which we know they are keen to adopt.”


Energy storage About the size of a washing machine, the ZEB units contain a high density concrete, similar to that found in a storage heater, with insulation surrounding it. Once installed, the ZEB takes


electricity from the grid or from solar PV panels and works like a high density thermal energy store, storing up to 40kWh of energy. Pipes contained within the core distribute the energy when it is needed to be released to radiators, underfloor heating or a hot water cylinder. All ZEB boilers are internet connected, so users can


access an app which provides information as to how the boiler is performing. The Internet of Things (IoT) platform also enables the technology to respond to outdoor temperatures and forecast exactly how much heating each individual home is likely to need over the next day. Commenting on the trial,


CEO of Tepeo Johan du Plessis (pictured above) says: “Neat Heat’s success paves the way for the wider deployment of heat batteries, which is critical to the UK’s successful transition to Net Zero.” “Heat batteries working in


tandem with dynamic tariffs will enable millions of homes currently unable to switch to low-carbon solutions to join the green transition.” Grainne Regan, head of heat


at OVO, adds: “The ability to decouple electricity consumption from heating is an essential part of decarbonising home heating. This trial represents a huge step forward in our joint mission to decarbonise the UK energy grid by 2035.” ◼ phamnews.co.uk/1024/62


Calls to provide VAT relief


Industry stakeholders and a group of cross-party MPs and Peers are urging the UK government to adopt a technology-neutral approach to home decarbonisation. The ESM (Energy Saving Materials) status grants VAT relief to a limited range of low-carbon technologies, predominantly heat pumps. It is argued that heat batteries offer a viable low-carbon alternative, operating at temperatures equivalent to traditional fossil fuel systems and using existing home infrastructure such as pipes and radiators. Despite support from senior officials in the Department for Energy


Security and Net Zero (DESNZ), heat batteries narrowly missed out on achieving ESM status in Autumn 2023 due to definitional issues. Since then, ongoing discussions between the DESNZ, HM Treasury (HMT), and HM Revenue & Customs (HMRC) have sought to address these barriers. However, the scope of ESM relief has not yet been expanded, despite HMRC acknowledging that heat batteries meet the objectives of the scheme. The co-signatories of a letter addressed to James Murray MP,


Exchequer Secretary to the Treasury, emphasise that extending ESM status to heat batteries will particularly benefit smaller, low- income households that lack outdoor space, alongside a request that VAT relief for all ESMs runs until 2030. They argue that it is crucial for reducing household carbon emissions by offering consumers a variety of viable and cost-effective, low-carbon heating options.


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